The programs that actually save you money
FHSA (First Home Savings Account)
- Contribute up to $8,000/year, lifetime cap $40,000
- Contributions are tax-deductible (like an RRSP)
- Withdrawals for a first home are tax-free (like a TFSA)
Home Buyers' Plan (HBP)
- Withdraw up to $60,000 from your RRSP toward a first home
- Pay it back over 15 years
First-Time Land Transfer Tax Rebate
- Ontario: up to $4,000 rebate
- Toronto (if you buy in the City of Toronto): additional municipal rebate up to $4,475
The down-payment math
For a $700,000 home with 10% down ($70,000):
- Mortgage = $630,000
- CMHC insurance premium ≈ 3.10% = $19,530 (added to mortgage)
- Total mortgage = $649,530
- At a 5-year fixed of 4.49%, 25-year amortization ≈ $3,595/month in P&I
Always model the full carrying cost, mortgage + property tax + insurance + utilities + (condo fees).
Three mistakes I see every quarter
- Maxing pre-approval. Pre-approved for $850k doesn't mean you should spend $850k.
- Skipping the inspection in a competitive market. Use a pre-listing inspection or a pre-offer walkthrough instead.
- Buying the wrong product. A $650k condo with $900/month fees can carry more expensively than a $700k freehold townhouse.